Black Market Gambling Expands as UK Enforcement Falls Behind

The UK’s efforts to rein in unregulated gambling operators face a fundamental challenge as the black market consistently remains one step ahead of enforcement efforts. A new report by fraud specialist Alex Wood, commissioned by Flutter UK & Ireland, reveals that illegal betting sites remain easily accessible, and often openly promoted.

Many Sites Lacked Even Basic Protections

Some of Wood’s findings show a shocking lack of due diligence. In tests carried out ahead of the Cheltenham Festival, he created accounts on offshore gambling sites using obviously false identities. Among them were the names of well-known racing figures, including Harry Skelton, Jack Kennedy, and trainer Willie Mullins. The system allowed addresses like “Cheltenham racecourse” to go unchallenged.

In one hilarious, yet disconcerting case, Wood registered under the name Red Rum as he declared his occupation as “racehorse” and his address as “horse heaven.” Another platform allowed him to register as a six-year-old who resided at Buckingham Palace. These identity verification failures underscore how offshore betting sites may be especially attractive to users seeking to circumvent safeguards such as self-exclusion schemes.

The report prominently features brands like MyStake, Velobet, and Cosmobet. MyStake, in particular, has recently faced controversy following its announcement of a high-profile partnership with soccer star Ronaldinho. These claims have since been discredited, as evidence suggests the picture showing the famed athlete shaking hands with MyStake’s CEO may have been fabricated.

Enforcement Remains Insufficient

For regulators, the problem is not just the existence of these platforms, but how they reach customers. According to Wood, social media plays a key role in finding new customers. His Instagram feed quickly filled with posts directing users to offshore bookmakers, often via tipsters and influencer accounts. Some links led to private groups on messaging apps, where betting advice and referral codes were shared freely.

I’ve been shocked at the sheer amount of illegal, unlicensed gambling content being pushed and promoted online, and social media companies have serious questions to answer.

Alex Wood

In one case, Wood asked Meta AI about offshore gambling options and received links to some especially egregious black market websites that aggressively targeted UK users. Payments represent another vulnerability. Most websites operating outside UK regulations still permit customers to use common payment methods, including bank cards and digital wallets. That makes the transition from a regulated environment to an unregulated one almost frictionless for the average user.

The issue is only becoming worse. Illegal operators now account for roughly 9% of the UK gambling market, a significant increase over previous years. That shift could undermine the Treasury’s recent efforts to secure additional revenue by raising gambling taxes. Regulated operators are increasingly calling for better collaboration between government, regulators, and technology companies, especially regarding advertising and payment systems.